Pádraig O'Sullivan
Ceist:470. Deputy Pádraig O'Sullivan asked the Minister for Finance his plans to enable credit unions to become involved in financing housing projects; and if he will make a statement on the matter. [18438/21]
Amharc ar fhreagraWednesday, 21 April 2021
Ceisteanna (470)
Freagraí scríofa
In answering the Deputy's question, I am referring to the sector's involvement in social housing projects.
Following a review of the investment framework for credit unions in 2017, the Central Bank introduced amending investment and liquidity regulations for credit unions. Since 1 March 2018, credit unions have been permitted to invest in regulated investment vehicles where the underlying investments are investments in Tier 3 Approved Housing Bodies (AHBs) for the provision of social housing. The regulations require that investments by credit unions in Tier 3 AHBs must be made through a regulated investment vehicle. The maximum permitted investment amount per credit union is 50% of a credit union's regulatory reserves where a credit union has total assets of at least €100 million and 25% of a credit unions regulatory reserves for all other credit unions. These limits may facilitate a combined sector investment in Tier 3 AHBs of close to €700 million.
As such, the Government and the Central Bank have fulfilled their role and it is now up to both the credit union and social housing sectors themselves to progress and develop any specific funding mechanisms. I understand three groups are currently seeking to establish Special Purpose Vehicles (SPVs) to allow investment into Tier 3 AHBs, including the two credit union representative bodies (the Irish League of Credit Unions and the Credit Union Development Association).
It should be noted that the Department of Housing, Planning, Community and Local Government is the department with primary responsibility for the formulation and implementation of policy, and for the preparation of legislation, in relation to housing.